FG, States Agree to Sell Five Power Plants to Fund 2023 Budget

After a long disagreement, the Federal Government and all 36 States including FCT have agreed to sell five power plants under the National Integrated Power Projects and use the proceeds to fund the 2023 budget. 

This agreement is coming after over two years of disputes and legal tussles regarding the sale of the NIPP plants managed by the Niger Delta Power Holding Company, NDPH, Investors King understands. 

It would be recalled that all 36 states earlier disagreed with the Federal Government on the sale of the power plants to private investors. Leading to a legal tussle between the two. 

While speaking to newsmen, the Director General of the Bureau of Public Enterprises, Alex Okoh noted that the bureau has a target to raise N260 billion during the 2023 fiscal year most of which will come from the sale of critical assets.  

“The expectation (of BPE) in the fiscal plan for 2023 is N260bn, and the critical assets we are looking at are the power assets. Five of the NIPP plants; incidentally, we are reaching some understanding with the state governors for selling those five power plants.

“And that is what has dragged this transaction for at least the past two years; just getting a common stakeholder understanding on the critical need to realise value from these assets now, before they depreciate beyond value.

Thankfully, last week we were able to resolve the issues with the governors. So for those assets, we are likely to reach the financial opening of the bids before the end of the year, which is maybe next week,” Okoh said.

The DG added that the Federal Government will get 53 percent of the entire proceeds while the remaining 47 percent will go to the state governments. 

In April 2022, the National Council on Privatisation approved the adoption of a fast-track strategy for the privatisation of the five power plants which include Geregu, Omotosho, Olorunsogo, Calabar and Benin-Ihovbor.